In recent months there has been dark news about the Austrian economy. But what is the labor market and Co. Real? “It can be much worse,” summarizes the IHS director Holger Bonin.
“Our economy is growing again, but it becomes considerably too weak,” Bonin explains on Thursday. But how it goes on depends on the decisions that politics makes, Bonin explains. According to the prediction of the Vienna Institute for Higher Studies (IHS), the economy will recover somewhat in the coming years. Here are the most important key figures:
Go out of the recession
According to the prediction, Austria will fight the recession. The IHS Institute expects that the real gross domestic product (GDP) will grow by 0.9 percent per year by 2029. GDP measures the production of goods and services in Austria in one year.
E -inflation remains
You notice that prices are high when shopping in daily life. But the figures from the IHS Institute also show this. This year, prices are expected to increase by 2.9 percent, and inflation should then be 2.3 percent per year by 2029. A reason why inflation remains at this high level is that the competition in Austria is sometimes weak, as Bonin explains.
Fewer debts for the state
The state has high debts – according to the forecast, these will at least decrease in the coming years. Last year the deficit was 4.6 percent of GDP. By 2029, debts can go back to 3.2 percent.
Many are retiring
“All in all, the situation of the labor market is robust despite the long-term recession,” writes the IHS Institute to the labor market. The unemployment rate has recently increased, but according to the predictions it should decrease again. The unemployment rate is expected to be 6.2 percent by 2029 – currently 6.8 percent. The employment rate must also rise slightly. This is also due to the fact that many people retire and say goodbye to the labor market.
Export more despite the Trump -Douane Policy
US President Donald Trump has noticed his aggressive customs policy in recent months also puts pressure on world trade. However, the IHS Institute experts expect that Austrian export will increase by 1.5 percent by 2029. Input will probably increase slightly more.
Feast for buying can come back
In the past five years, the Austrians have not pulled their Börsel so lightly. The caution of the population has probably activated Corona Pandemic. The economists estimate that consumption will attract something again in the coming years.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
